Niantic Labs sells its video game division for $ 3.5 billion in Saudi Arabia owned by Saudi Arabia, since the American augmented reality company focuses on geospatial technology after not recreating the success of its 2016 hits Pokemon go.
The deal announced on Wednesday also promotes the ambitions of Saudi Arabia to become the “Ultimate Global Hub” for games.
The sovereign assets of the kingdom to diversify in 2023 as part of a broader push in the country for 4.9 billion US dollars, to diversify beyond fossil fuels.
NianticPresent A American software development company based in San Francisco was once part of Google, but became independent in 2015.
The company said it would distribute an additional 350 million US dollars to its shares as part of the deal.
His geospatial Artificial Intelligence Business will also be introduced to a new company called Niantic Spatial, which was an important leader of the Google Maps, Google Earth and Google Street View.
The geospatial AI or only Geoai combines traditional geospatial analysis and mapping with AI to develop a faster and deeper analysis of data.
Niantic Spatial is funded by capital with 250 million US dollars -200 million US dollars from the Niantic and 50 million US dollar from Scopely. All original Niantic investors will continue to be shareholders from Niantic Spatial.
The step follows for several difficult years for Niantic.
After Pokemon go The company had one of the most successful mobile games to reproduce its success and had to relieve the employees in 2022 and 2023. It was also his axle. Harry Potter: Wizards unite Mobile phone game in 2022.
For Saudi Arabia, already a growing center for games and home of the Esports World Cup, the deal builds on the plan to invest our experienced game group in initiatives in connection with the industry.
Savvy Games is an important investor in global video game companies, including Nintendo, in which it has a share of around 7.54 percent last year.
